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David’s Tea Shares Surge 42% in IPO

Montreal-based company seeks to use proceeds to expand its chain of tea stores

By

Lisa Beilfuss

Updated June 5, 2015 4:45 p.m. ET

Shares in David’s Tea Inc. jumped 42% Friday in their trading debut, as the Montreal-based beverage chain looks to expand its number of stores in North America.

Chief Executive Sylvain Toutant said in an interview Friday that the proceeds would help fund expansion of its stores that sell teas and tea products. There is room for 550 stores in North America, Mr. Toutant said, up from the 158 it currently operates.